The bill amends the existing law governing the state building authority by enhancing the framework for issuing and managing revenue obligations, such as revenue bonds and notes. These obligations are explicitly not considered general obligations of the state and are payable solely from true rental income and other specified revenues, with a clear statement of this limitation required on each obligation. The bill outlines permissible purposes for issuing these obligations, including covering facility costs, refunding existing obligations, and managing incidental expenses. It also establishes provisions for the management and security of these obligations, including the appointment of a trustee for bondholders and the creation of reserves for principal and interest payments, while capping the total outstanding obligations at $2.7 billion.

Additionally, the bill introduces provisions for the establishment of separate funds for managing rental and other revenues, allowing the authority to apply unpledged revenues towards the payment of obligations and costs associated with acquiring additional facilities, subject to approval by the state administrative board. It clarifies that any appreciation in principal amount of issued obligations will be treated as interest, adhering to interest rate limitations. The bill also details the creation of a pool of obligations for interim financing needs, requiring board approval and compliance with oversight entities, while ensuring that proceeds from these obligations can only be used for specified purposes with necessary approvals. Bonds and notes issued under this act are exempt from the revised municipal finance act but must comply with the agency financing reporting act, and the act is set to take immediate effect upon approval.

Statutes affected:
Substitute (S-1): 830.418
Senate Introduced Bill: 830.418
As Passed by the Senate: 830.418
As Passed by the House: 830.418
Senate Concurred Bill: 830.418
Senate Enrolled Bill: 830.418